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For purposes of this subsection, any property received by the
taxpayer shall be treated as property which is not like-kind
property if--
(A) such property is not identified as property to
be received in the exchange on or before the day which
is 45 days after the date on which the taxpayer
transfers the property relinquished in the exchange, or
(B) such property is received after the earlier of--
(i) the day which is 180 days after the date on
which the taxpayer transfers the property relinquished
in the exchange, or
(ii) the due date (determined with regard to
extension) for the transferor's return of the tax
imposed by this chapter for the taxable year in which
the transfer of the relinquished property occurs.
The Secretary issued regulations under section 1031 after the
years in issue which require taxpayers to identify replacement
property in a written document signed by the taxpayer and sent to
either (1) the person obligated to transfer the replacement
property or (2) any person involved in the exchange (e.g., a
party, an intermediary, or an escrow agent) other than the
taxpayer or a disqualified person (the taxpayer's agent or a
related party). Sec. 1.1031(k)-1(c)(2), Income Tax Regs. The
regulations apply to transfers of property made on or after June
10, 1991, or in limited cases, transfers made on or after May 16,
1990. Sec. 1.1031(k)-1(o), Income Tax Regs.
As the regulations do not apply in this case, petitioners
contend that during the years in issue, the proper method of
identification was ambiguous. They argue that section
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